ORM, I spilled coffee on my shirt!
I spilled coffee on my shirt!
I was driving to a client meeting with my favorite blend of coffee in hand. It was an early morning, but I had been looking forward to this meeting all week as I knew it could be integral for our company's success. My mind was focused on all the details I needed to cover as I took another sip.
Suddenly there was an unexpected jolt. An unseen dip in the road shook me out of my thoughts and shook the contents of my coffee out of its cup and onto my shirt! It was not something that happened often but this time left me feeling helpless and frustrated. What could I do? Go back home and change? No, I'd be pretty late to this important meeting. And I knew I couldn't walk into a meeting with a client - one that I'm helping to get organized and run more efficiently - looking like I can't run my own house! I'm supposed to be eliminating stress, not bringing in more! But then something occurred to me; I had taken steps ahead of time that allowed me to still make it in time – and looking sharp too.
Reaching into my satchel, sure enough – there was a tide pen waiting for just such an occasion! Taking care not to spread out any stain further than necessary, I set about making quick work of eliminating watermark from where it should never have been. It worked like a charm; within minutes you'd never know anything happened!
Not a paid endorsement of Tide nor coffee
Not a paid endorsement of Tide nor coffee
What would have seemed like an impossible situation only a few moments ago suddenly had an easy solution. I breathed a sigh of relief knowing that my constant evaluation of risk and (more importantly) implementing countermeasures keep my commitments from being compromised. Everything went according to plan (and schedule!). I arrived at my destination with plenty of time before our appointment began. We got down business and accomplished great things during our meeting together.
As I drove away from my meeting, I thought about how my own story reflects what I do for my clients. Operational Risk Management (ORM) is a process of identifying, assessing, and preparing for risks that may affect your organization. It helps to ensure that your business operations are within acceptable risk limits and processes are in place to detect any potential losses.
My company, Frameworks Consulting, helps organizations identify the biggest areas of risk. Along with our clients, we define acceptable risk and put processes and systems in place to mitigate what isn't acceptable. Commonly, the areas we identify are:
Over-reliance on key employees
Ineffective internal controls
Complex organizational structures
Lack of accountability in the workforce
Poorly defined policies and procedures
I really could go on and on
Operational Risk Management Framework
Once we have identified the risks and designed a framework to manage them, we work with our clients to ensure that their risk management practices are followed. This includes: developing training programs and communications, developing systems and automations, monitoring changes in the organization's environment, developing a culture of awareness and risk avoidance, and continually improving the processes. We also provide guidance on how to respond if an incident occurs.
ORM offers REAL value!
Not only does this help ensure that the business runs consistently well, but it brings more value to the company. Practicing ORM (and having a documented plan) makes your company more attractive to investors, whether that be angel investors, private equity groups, or banks. Lowering your risk lowers theirs! It also reduces panic when those inevitable situations occur. This helps ensure that your employees can take action rather than just sit idly and let it happen.
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That fateful morning, I was able to mitigate and minimize the effects of a bad situation with planning and preparedness. It was a reminder that even the most unlikely and unforeseen events can sometimes pose a threat to the success we are all trying to build in our business. ORM allowed me to rectify the bad situation quickly and the enthusiasm for the rest of the day had returned.
Even better yet? The client meeting went well too!
Does your company practice operational risk management?
Do you train your employees on acceptable risk? And mitigation strategies?
Have you ever had the same bad situation happen to your business more than once?
How often do you practice risk mitigation through tabletop sessions?
Call or email for a free Operational Risk Management consultation.
Ask about our ORM Tiger Team. We work with highly vetted providers that can ensure that you are adequately covered!